Molecular Dynamics Ltd. v. Spectrum Dynamics Medical Limited

Background

Petitioners Molecular Dynamics Ltd., SDBM Limited, and Chauncey Capital Corp. are seeking to vacate an arbitration award. Through a letter dated October 13, 2022, Petitioners asked for permission to conduct limited discovery related to their motion to vacate and requested a hearing after discovery to resolve disputed factual issues.

Petitioners’ Arguments

Petitioners argued that discovery was relevant and necessary to investigate whether Respondents’ alleged fraudulent conduct affected the arbitration. They asserted that key witnesses and an expert gave material false testimony and that important evidence was suppressed. Petitioners also argued that the arbitration may have been affected by the evident partiality of a predecessor arbitration chair, Professor van den Berg, and questioned whether replacement chair Ms. Kirby took adequate steps to address that issue or relied on the predecessor’s draft award.

Respondents denied the fraud allegations and argued, among other things, that Petitioners had already presented the fraud evidence to the arbitral tribunal and had waived objections concerning Ms. Kirby’s appointment. The filing states that Respondents did not agree to the requested discovery and intended to oppose it.

Court’s Action

The court’s October 18, 2022 endorsement ordered Respondents to file a response by October 20, 2022, concerning Petitioners’ request for limited discovery and a related hearing. The text provided does not state that the court granted or denied discovery, and it does not resolve the motion to vacate the arbitration award.